During the past week, China's hot dip galvanized (HDG) market has observed slight increases in some regions, while most prices have been stable. At present, production costs are still providing strong support for market prices of HDG. The average HDG prices in the main markets in China are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Thick HDG |
1.0 mm x 1,250 mm |
SGCC |
5,813 |
0 |
892 |
0 |
Thin HDG |
0.5 mm x 1,000 mm |
SGCC |
5,933 |
+50 |
910 |
+8 |
On May 12, the price of SGCC 1.0 mm x 1,250 mm x C HDG was at RMB 5,820/mt ($893/mt), RMB 5,950/mt ($913mt) and at RMB 5,670/mt ($870/mt) in the Shanghai, Guangzhou and Boxing markets respectively. Meanwhile, prices of SGCC 0.5 mm x 1,000 mm x C HDG were at RMB 5,750/mt ($882/mt) in the Shanghai market, RMB 6,400/mt ($982/mt) in Guangzhou and RMB 5,650/mt ($867/mt) in the Boxing market. The above prices include 17 percent VAT (US$1 = RMB 6.52).
In the past week, HDG prices in China's major markets have been mainly stable. However, some traders have been seeking to push up their prices, though transaction volumes have been on the weak side. Most traders are concerned over whether market prices will remain firm, and fear a reduction may be seen in the coming period. Meanwhile, costs are still a major factor supporting current HDG prices. Although there have been new arrivals of HDG in the market, there are shortages of some specifications.
On the mills' side, after Baosteel announced its new prices for June deliveries, insiders said that the generally unchanged prices reflected Baosteel's cautious attitude and the downward trend of auto sheet demand in the market. Baosteel's prices will likely influence the pricing decisions of other domestic mills.
The Chinese HDG market is expected to see stable price movement in the coming week.